KANSAS CITY, MISSOURI, U.S. — The average price for organic food-grade soybeans declined from the prior two-month period in the August-September period, while average prices for corn and wheat were untested, according to Mercaris, the organic and non-GMO trading platform and market information company.
Organic food-grade soybean prices averaged $22.11 per bushel in the latest two-month period, down $1.07 from June-July but up 55¢ from April-May. The August-September price was up 7¢ from $22.04 per bushel in the same period a year ago.
“Organic soybean prices were lower again over the August-September time period, pulling nearly even with last year’s level,” said Ryan Koory, director of economics at Mercaris. “The organic crop harvest is just beginning across much of the United States, and bouts of rain and colder weather at the start of October will likely slow its pace. With reduced acres, and expectations of lower yields, U.S. organic soybean production is set to decline.
“However, the reduced production outlook isn’t being reflected in prices at the moment. Purchasers have indicated heavily pursuing contracts for new crop delivery over the spring in an attempt to get ahead of harvest supply and price risks. As a result, it appears the market is long at the start of the fourth quarter of 2019, leading to minimal market activity and price support this fall. As crops are pulled in from fields, and supplies materialize, market activity is expected to pick up again adding bullish support to prices.”
Last month Mercaris forecast 2019 U.S. harvested organic soybean acres will decline 8% year over year, despite a 7% increase in overall organic field crop harvested area at 3.1 million acres.
Trading volumes were too low to generate price quotes for organic food-grade corn and wheat, including hard red winter, soft red winter, hard red spring and durum for the August-September period, Mercaris said.
Mercaris is a comprehensive source of market data and online trading for feed-grade and food-grade organic and non-GMO commodities based in Silver Spring, Maryland, U.S. For more information visit www.mercaris.com.